Goldman Sachs Reaffirms NVIDIA Buy Rating as P/E Falls to 3-Year Low, Eyes $120B+ Data Center Revenue

According to Goldman Sachs, the investment bank recently reaffirmed its buy rating on NVIDIA, noting that despite the chipmaker's significant gains over the past year, its current valuation remains attractive. Goldman Sachs forecasts NVIDIA's data center business revenue will exceed $120 billion this year, representing approximately 25% year-over-year growth.

The bank pointed out that NVIDIA's price-to-earnings ratio has fallen to the lower-mid range of its three-year historical band, presenting favorable entry timing given the company's competitive moat in AI chips and sustained demand growth. Goldman Sachs also emphasized that AI infrastructure spending remains in early stages, with significant runway ahead.